ECHO.L Regulatory News (ECHO)

16 May 2006 07:00

Independent Resources PLC16 May 2006 16 May 2006 Independent Resources plc Update on Rivara Pressure from stored gas will be used to generate clean electricity Independent Resources plc ("Independent Resources") (AiM: IRG) announces thatits plans for its proposed Rivara underground gas storage facility (UGS) inItaly will include the generation of electricity from natural gas contained inRivara - without burning the gas. Engineers at Independent Gas Management, a wholly-owned subsidiary ofIndependent Resources, have devised a process to extract clean energy from thevolumes of natural gas that will be stored more than 2,500 metres below groundwithin the Rivara UGS in northern Italy. As gas is withdrawn from the storagefacility, the flow pressure will drive turbines that will generate electricityfor use onsite and for export to the Italian grid. The preliminary engineering design to exploit Rivara's gas pressure involvesfour turbines with a total generating capacity of some 24MW, much of which wouldbe operating as baseload electricity during peak demand periods for up to 85,000MWh per year. Baseload power in Italy is currently averaging around 70 eurosper MWh. Completion of the environmental impact assessment (EIA) for Rivara has beendelayed slightly in order to incorporate this innovative proposal in thedevelopment plan, and is now expected to be submitted by mid-June. The Italiangovernment and regulatory authorities are encouraging Independent Resources toadvance plans for Rivara as quickly as possible in view of the country'sincreasingly severe gas supply constraints. Independent Resources Executive Chairman Grayson Nash said: "We believe thatthis very significant enhancement to our overall development concept for Rivarawill not only provide us with a valuable extra revenue stream, but it will alsocreate a highly efficient and environmentally friendly source of additionalenergy to help meet Italy's ever-growing demand." Independent Resources was admitted to AiM in December 2005. In addition toRivara, its assets include the Fiume Bruna coal bed methane (CBM) permit inItaly and a 40% interest in the Ksar Hadada onshore permit in Tunisia. Dr Stephen Staley is Independent Resources' Managing Director and has reviewedand approved the content of the above. In a previous role Dr Staley was a VicePresident of Cinergy Global Power where he led the development and acquisitionof gas-fired and renewable power generation facilities and of gas and powertransmission assets in Europe, Africa and Asia. He also founded DerwentResources Limited, a consultancy company which advised on, inter alia, thedevelopment and construction of power stations around the world. Dr Staley holds a B.Sc.(Hons.) in geophysics from Edinburgh University and aPh.D. in petroleum geology from Sheffield University. He is a qualified personwithin the definition of the AiM guidelines. For further information contact: Independent Resources plc: Stephen Staley, Managing Director +44 (0) 1332 865253 +44 (0) 7771 838753 First City Financial Public Relations: Ian Foster +44 (0) 20 7436 7486 +44 (0) 7739 185050 Deloitte Corporate Finance: Jonathan Hinton +44 (0) 20 7936 3000Feilim McCole This information is provided by RNS The company news service from the London Stock Exchange